West-Wide Governance Pathways Initiative Advances

The California Independent System Operator Board of Governors and the Western Energy Markets (WEM) Governing Body on Nov. 8 took action to implement the first step of the West-Wide Governance Pathways Initiative. This initiative was developed last year to maximize the benefits of wholesale electricity markets through a new governing organization.

The West-Wide Governance Pathways Initiative Step 1 proposal received approval in August to create a more independent and regional approach to make market decisions involving the Western Energy Imbalance Market (WEIM) and the Extended Day-Ahead Market (EDAM).

The joint decision approves revisions to governance documents in support of the Pathways Initiative allowing filing of amendments with the Federal Energy Regulatory Commission. The decision approves the next legal steps to implement the initiative once the “trigger” based on formal commitments to participation in EDAM is met.Though these revisions are not anticipated to take effect until 2025, the ISO’s preparation allows time for FERC to rule on the required tariff amendment.

Earlier this year, the Pathways Launch Committee, composed of various industry experts, created its Step 1 proposal to achieve near-term progress to strengthen the WEM Governing Body’s oversight of the western markets, without requiring changes to California law.

The California grid operator oversees the operations of WEIM, which expands the geographical reach of the real-time electricity market to other Western regions. Currently, WEIM covers 79 percent of the Western Interconnection loads and has spurred $6.25 billion in economic benefits for its participants over the last decade.

EDAM builds on the benefits of WEIM by utilizing significant resource diversity and transmission connectivity between major supply and demand areas across the Western region. Several utility companies and organizations have expressed their intentions to join EDAM, such as PacifiCorp, Portland General Electric, Balancing Authority of Northern California, Los Angeles Department of Water & Power, and BHE Montana.